Bole Airport Area Residents' Idir members gathered at a consumer association cafeteria around Cape Verde St for their monthly meeting. What began as a routine gathering turned into a storm of confusion and concern, as a representative from the Women & Children's Bureau disclosed a directive that would fundamentally change their association. Traditionally a purely social organisation, their Idir would now be integrated into a formal hierarchical structure under the Bureau.

The Chairwoman of the Bole Airport Idir observed the confusion among members. Their 50-year-old Association, comprising over 200 households, faced a different future that requires financial audits and imposes social development responsibilities. This announcement caused a stir among the members, leading to an abrupt end of the meeting.

One attendee, Yetifwork Wolde, a 70-year-old who has been part of the Idir for 40 years, was particularly confused. "I didn't understand anything," she said. "It's as though we are turning into something else." For Yetifwork, joining the Idir was about maintaining social bonds and cohesion. She recalled the support she received during her toughest times, especially after losing close family members. "It's what got me through," she told Fortune.

Historically, Idirs have been grassroots social safety nets, primarily providing mutual aid for burials and addressing other community needs. However, their relevance has declined over the years, with the evolving urbanisation and outsourced funeral services in the capital. This decline prompted the Addis Abeba Women, Children, & Social Affairs Bureau to take action.

Signed by Woinshet Zerihun, head of the Bureau, the government has decided to regulate these associations by integrating them into its structure. Officials envisioned forming Idir councils at administrative levels and ensuring regular financial and social activity reports.

According to Genet Kitaw, deputy head of the Bureau, formalising Idirs was not just about control, but about boosting their potential. She believed these associations held major financial resources that could serve a wider range of purposes than solely funding funerals. She said restructuring to improve financial management and ensure the long-term sustainability of these associations for future generations is the goal.

"Gaps in finance management will be addressed," she said.

The vision for the future of Idirs was not simply financial. The Bureau had conducted a two-year assessment of these associations, identifying areas where they could improve their community contributions. Their plans included expanding the roles of Idirs to register births, deaths, marriages, and divorces in cooperation with Civil Service Registration & Residency Service Agency. This new role, Genet believed, would allow Idirs to play a more significant role in the community.

"Real changes can be made," she said.

Her optimism was supported by research conducted by Dejene Aredo. His findings show the reasons behind the enduring popularity of Idirs compared to the insurance system. He identified factors like cultural appropriateness, flexibility, accessibility, and cost-effectiveness as key reasons for their continued appeal. Dejene's research also sheds light on the informal sector's potential evolution into a complex and well-organised financial system. He emphasized the inherent self-adjusting mechanisms Idirs possess, allowing them to adapt to changing circumstances. According to him, these strengths should be acknowledged and supported by government policies to gradually transform these existing traditional financial institutions into modern ones.

Despite the compelling arguments for reform, the Bureau's directive wasn't met with universal acceptance. While over 7,150 Idir associations had already registered and received licenses under the new structure, this represented only a portion of the estimated 10,000 associations across the city. There were concerns and resistance, particularly about the level of government involvement.

Idirs have long existed as informal institutions with socially shared rules, sometimes unwritten. The rules are created, communicated, and enforced outside of officially sanctioned channels. The voluntary association has been the most widespread form of Idir, but its composition, system, approach, and size differ from place to place.

This informality, however, presented challenges for the Bureau's plans. Bole District, for instance, comprises around 600 associations currently in transition. Tarekegn Negasa, a senior expert at the District's Women, Children & Social Affairs Bureau, acknowledged the ongoing struggle to raise awareness among members. He explained that several meetings were being held to address these concerns. Despite these efforts, resistance persisted, particularly regarding the Bureau's control over finances.

"People need time to come to terms," he said.